Significant Issues of Financial Literacy and Application in the Stock Market: A Descriptive Study on Bangladesh Capital Market

Chandra Das

Abstract: Lagging behind of financial knowledge, investors are not able to furnish and utilize their invested fund in the stock market. The complexity and advancement of current financial markets as well as instruments, investors should have financial knowledge in everyday life, such as comparing different financial instruments, deciding how much to save, when and where to invest, when and where to get the financing and other financial matters. Furthermore, the needs for Financial Literacy have become increasingly significant with the globalization and the easier access to financial markets as well as the rapid growth in diversified financial products. The study aims to provide financial literacy knowledge and how to apply the knowledge into the capital market. The literature identifies that the primary literacy level is not so satisfactory. An individual with less financial knowledge has more negative opinion about finances and makes more incorrect financial decisions. As a result, they are detached from embracing innovative financial products, making sound financial planning decisions and participation in the stock market. It also objects to define the financial literacy character and suggest to involving into the stock market.

[ FULL TEXT PDF 1-7 ] DOI: 10.30566/ijo-bs/2019-11-4

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